"The UK post-Brexit: how does the City of London stay relevant? The City of London stays relevant by suddenly becoming the proponents of the new technologies and not just patching existing systems to make them work post-Brexit, actually leapfrogging."

Blockchain, also known as distributed ledger technology, is the name for the next-generation database technology first developed to underpin the digital currency bitcoin.

The technology allows for the creation of a shared database, meaning all parties see the same version. It uses complex cryptography and group authentication to police the editing of the ledger. The technology has almost endless applications for other industries and processes that involve a trusted middleman or central authority — everything from recording births to trading securities.

Kay Swinburne MEP.
European Parliament
"We have a unique opportunity to actually make our markets more efficient using the new platforms," Conservative MEP Swinburne told BI.

She compared it the potential of distributed ledger technology in the UK to the "Big Bang" of the 1980s, when a wave of financial deregulation led to an explosion of activity in the City.

"I am not a natural risk taker but I genuinely think this is the UK's opportunity, as it did with the Big Bang moment in the 1980s, this is it's moment to leapfrog."

Swinburne is one of the UK's most senior MEPs and has been called the "architect of Mifid II" for her central role in drafting the European financial regulation, which came into force in January. A former banker, she is the most senior British legislator on the EU's influential Economic and Monetary Committee.

"I want to see not just the FCA, I want to see the Bank of England, embrace [distributed ledger technology]," Swinburne said. "I want them to be the first central bank to open up and say, maybe the monetary policy of the future doesn't involve issuing notes all the time, maybe it involves other alternative payment systems."

Swinburne said: "We've got proof of concept of DLT in so many areas. It now needs to be scaled up. We've got to take some risks. We have the opportunity to really make a difference in a way that I don't think Europe post-Brexit is going to be able to do.

"We need to start opening up our minds as to how we leapfrog. The conservative status quo is now too risky with Brexit. We need to leapfrog to stay relevant. The City needs to stay relevant."